The Rise and Integration of Aadhaar in India’s Digital Ecosystem

The Rise and Integration of Aadhaar in India’s Digital Ecosystem

KEY POINTS

● The Unique Identification Authority of India (UIDAI) assigns residents of India a 12-digit number known as Aadhaar as a digital identification.

● The Aadhaar Generation has shown steady growth over the years, increasing from 80.49 crore in 2014-15 to 137.96 crore in 2023-24. This represents a 71% increase over ten years

● Aadhaar Updates have seen dramatic growth, increasing from just 0.91 crore in 2014-15 to 92.24 crore in 2023-24 – a staggering 101 times increase.

● e-KYC (Electronic Know Your Customer) transactions have shown explosive growth, from 11.59 crore in 2014-15 to 1887.39 crore in 2023-24, representing a 163 times increase.

● Authentication transactions have seen the most dramatic increase, rising from 32.37 crore in 2014-15 to 11,134.91 crore in 2023-24, an astounding 344 times increase.

The Unique Identification Authority of India (UIDAI) assigns Indian residents a 12-digit number known as Aadhaar as a digital identification. It can be used offline or online anywhere in India for identification and address verification. Aadhaar is the most extensive biometric-based identifying system in the world and is a crucial component of India’s “Digital India” plan. It enables the Indian government to directly contact its citizens to provide services, benefits, and subsidies by using their Aadhaar numbers. Moreover, beneficiaries of welfare programs, bank accounts, gas connections, and mobile SIMs can also be identified using Aadhaar, saving time and money. Aadhaar (digital) cards can be downloaded from the UIDAI website or mailed via India Post. However, As per the Supreme Court’s order, Aadhaar cards are not necessary to create bank accounts, obtain cellphone numbers, or enrol in school.

The total number of Aadhaar generated by UIDAI has increased from 80.49 crore in 2014-15 to 137.96 crore in 2023-24, representing a 71% increase over the last 10 years. The growth rate was more rapid in the earlier years, which is expected as the system was being rolled out, and has slowed in recent years as it approaches saturation. It also indicates that Aadhaar IDs have already been issued for a large portion of India’s population. The total number of Aadhaar Updates has also seen a dramatic growth. It has grown 101 times over the past ten years, from a mere 0.91 crore in 2014–15 to 92.24 crore in 2023–24. This exponential growth indicates engagement with the Aadhaar system as more people update their information. It also suggests improvements in the update process and growing awareness among the population about the importance of keeping their Aadhaar information current.

Furthermore, the total number of e-KYC transactions has grown from 11.59 crore in 2014-15 to 1887.39 crore in 2023-24, representing a 163-fold increase. This massive growth reflects the increasing integration of Aadhaar into various services requiring identity verification, from banking to telecom. The consistent year-on-year growth indicates the growing reliance on Aadhaar for digital identity verification across sectors. The total number of authenticated transactions has seen the most dramatic increase, as it has risen by an incredible 344 times from 32.37 crore in 2014-15 to 11,134.91 crore in 2023-24. This exponential growth underscores Aadhaar’s central role in India’s digital infrastructure. The number of authentications has more than doubled in just the last three years, suggesting rapid adoption of Aadhaar-based services across various domains (fig: 1).

Overall, this data illustrates the transformative impact of Aadhaar on India’s digital landscape. The steady growth in the Aadhaar generation, coupled with the explosive growth in updates, e-KYC, and authentications, indicates that Aadhaar has become an integral part of how Indians interact with various public and private services. The system appears to be moving from a phase of initial adoption to one of deep integration and frequent use. This transition likely improves efficiency in service delivery, reduces fraud through better identity verification, and enhances financial inclusion by making it easier for people to access banking and other services. The rapid growth in authentications and e-KYC transactions suggests successful government initiatives to promote digital governance and the private sector’s adoption of Aadhaar-based systems. However, such rapid and widespread adoption also raises essential considerations about data privacy, security, and the potential to exclude those who face difficulties obtaining or using Aadhaar. The increasing reliance on a single identification system for so many services also underscores the critical importance of system reliability and robust safeguards against misuse. 

References

  1. Unique Identification Authority of India. (n.d.). https://uidai.gov.in/en/.
  2. Unique Identification Authority of India Dashboard. (n.d.). https://uidai.gov.in/aadhaar_dashboard/india.php.
  3. Centralised Aadhaar Vault | National Informatics Centre. (n.d.). https://www.nic.in/servicecontents/centralised-aadhaar-vault/#:~:text=NIC%20has%20set%20up%20a,at%5Dnic%5Bdot%5Din

 



About Author



 

Pankaj Chowdhury is a former Research Assistant at the International Economic Association. He holds a Master’s degree in Demography & Biostatistics from the International Institute for Population Sciences and a Bachelor’s degree in Statistics from Visva-Bharati University. His primary research interests focus on exploring new dimensions of in computational social science and digital demography.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of 360 Analytika.

Acknowledgement: The author extends his gratitude to the Ministry of Electronics and Information Technology for providing data support.

This article is posted by Sahil Shekh, Editor-in-Chief at 360 Analytika.

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